TAMPA, FL – Josiah E. Hutton, 60, of Winter Haven, Florida, has admitted to deliberately defrauding the bankruptcy system, a federal prosecutor announced today. The former attorney pleaded guilty to concealing assets belonging to a debtor from the bankruptcy estate – a move designed to shield funds from creditors and the court.
Acting United States Attorney W. Stephen Muldrow confirmed that Hutton faces a maximum penalty of five years in federal prison following his guilty plea. Sentencing is scheduled for June 5, 2017. The case paints a picture of a legal professional abusing their position for personal gain, further eroding public trust in the system.
According to the plea agreement, Hutton was hired to represent a client preparing to file for bankruptcy. A settlement check, rightfully belonging to the debtor’s estate, landed in Hutton’s attorney escrow account. Instead of disclosing this crucial asset, Hutton intentionally omitted it from the bankruptcy petition he prepared and certified. This act of omission, investigators say, was a calculated attempt to deceive both creditors and the Bankruptcy Court.
The scheme hinged on keeping the settlement check hidden, preventing those owed money from recovering what was rightfully theirs. By failing to list the asset, Hutton effectively allowed his client to potentially discharge debts while concealing available funds – a blatant violation of bankruptcy law. The full amount of the concealed settlement remains undisclosed.
Federal investigators from the Federal Bureau of Investigation (FBI) and the Florida Department of Law Enforcement (FDLE) untangled the financial web, bringing Hutton’s deception to light. The investigation highlights the agencies’ commitment to policing the integrity of the bankruptcy process and holding those who exploit it accountable.
The prosecution is being handled by Special Assistant United States Attorney Chris Poor. This case serves as a stark reminder that even those sworn to uphold the law are not above it, and that attempts to manipulate the bankruptcy system will be met with federal scrutiny. The Grimy Times will continue to follow this case and report on the sentencing.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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